45 US attorney Generals including the district of Columbia have sought to expand a lawsuit which alleges price fixing of generic drugs to 18 companies and 15 medicines.
USA TODAY

Mylan Inc. CEO Heather Bresch holds up a 2-pack of EpiPen as she testifies during a hearing before the House Oversight and Government Reform Committee September 21, 2016 on Capitol Hill in Washington, DC. The committee held a hearing on "Reviewing the Rising Price of EpiPens."(Photo: Alex Wong, Getty Images)

Eighteen pharmaceutical companies conspired to fix the prices of certain critical treatments for patients suffering from conditions such as diabetes, hypertension, high blood pressure and rheumatoid arthritis, according to new allegations by the top law enforcement officials in 45 states.

Companies ranging from EpiPen maker Mylan Pharmaceuticals to Copaxone maker Teva Pharmaceuticals are accused of conspiring to slice the generic drug market into segments to avoid competing with each other and thus bolster their profits.

The group of state attorneys general on Tuesday requested court permission to expand their previously filed lawsuit, tripling the number of companies and targeting two specific individuals for the first time, including Mylan's president.

The anti-trust case's potential expansion had an immediate effect on Mylan, whose stock was down 7.1% to $35.54 at 1:52 p.m. The company's EpiPen treatment, which has become a lightning rod for political angst aimed at drug price spikes, is not included in the case.

The sweeping allegations contained in the complaint now cover 15 drugs, up from two when the case was originally filed in December.

The move comes amid an ongoing federal criminal investigation into the alleged price fixing — a probe that has already led to multiple suspects being charged.

The drugs allegedly swept up in the price-fixing scam include glaucoma treatment Acetazolamide, antibiotic Doxycycline, anxiety medication Meprobamate and asthma drug Theophylline, according to the state attorneys general.

The newly targeted individuals are Mylan President and Executive Director Rajiv Malik and Satish Mehta, CEO of Heritage Pharmaceuticals parent company Emcure Pharmaceuticals.

"The allegations of our complaint are shocking, and the depth and breadth of the conspiracies alleged are mind-blowing," Connecticut Attorney General George Jepsen, who is leading the complaint, said in a statement.

Mylan said it "found no evidence of price-fixing on the part of Mylan or its employees," including Malik, after conducting an internal investigation.

"Mylan has deep faith in the integrity of its President, Rajiv Malik, and stands behind him fully," Mylan said in a statement. "Mylan and Rajiv Malik both intend to defend this case vigorously, and we look forward to the opportunity to present a full defense."

Teva also said it had not acted inappropriately.

"Teva denies these allegations and will continue to defend itself vigorously in court," Teva spokesperson Denise Bradley said in an email.

"In accordance with our values, Teva is committed to complying with all applicable competition laws and regulations. To this end, we have a robust compliance program designed to ensure that our employees are aware of competition laws, regulations and internal policies, and their obligations to abide by them."

A representative of Heritage Pharmaceuticals was not immediately available Tuesday afternoon to comment on the allegations against Heritage or Mehta.

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Teva Pharmaceutical Industries Ltd names H Lundbeck A/S Chief Executive Kare Schultz as its new CEO and president, as it struggles with heavy debts and fierce competition for its generic drugs in the United States. Amy Pollock reports
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